Bill,
The scenario you modeled is correct. I received my excess contribution distribution for 2024 in March of 2025 and another distribution in late December 2025 for my total excess contributions made in 2025. This happened because I found out in February 2025 that having Medicare (signed up in March 2024) made me ineligible to contribute to my HSA for 10 months when I did my 2024 taxes. By then it was too late to change my healthcare plan to totally stop HSA contributions in 2025, but I reduced them to the minimum allowed by my plan. I figured I would take care of all of this on my 2025 taxes by taking the distribution in December 2025 instead of having to worry about this for 2026 taxes.
I updated TT2025, then went through the HSA interview as you suggested. Line 8f on my 2025 form 1040 does not include the $1020 that should be there. It only shows the $61 in earnings that I got in 2025. So, yes, I guess we do have a different issue.
I really appreciate your help. I think most other folks in this same situation wouldn't catch this error in their favor (see chat string, one other person has the same problem). I know I owe the taxes on the $1020 excess contribution deducted from my W2 earnings by my employer. I just want to do the right thing.
